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Minutes

Committee Hearing, June 3, 2008

Philadelphia City Council Committee HearingsJun 3, 2008

COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON PUBLIC PROPERTY AND PUBLIC WORKS - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, June 3, 2008 3:10 p.m. - - - PRESENT: COUNCILMAN DARRELL L. CLARKE, CHAIR COUNCILMAN FRANK DiCICCO COUNCILMAN WILLIAM GREENLEE COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILWOMAN DONNA REED MILLER BILL 080499 - An ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a lease agreement with the Philadelphia Municipal Authority for further sublease to Philadelphia Biosolids Services... - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2

Councilman Clarke

Good afternoon. This is the Committee on Public Property and Public Works that has been recessed from 1 o'clock. We have a quorum established: Councilman DiCicco, Councilwoman Krajewski and Councilman Bill Greenlee. Will the Clerk please read the title of the bill.

The Clerk

Bill No. 080499, an ordinance authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a lease agreement with the Philadelphia Municipal Authority for further sublease to Philadelphia Biosolids Services, LLC, a certain portion of a parcel of ground located on 7800 Penrose Ferry Road; all under certain terms and conditions.

Councilman Clarke

Thank you. (Witnesses approached witness table.)

Councilman Clarke

Please proceed. Anyone to testify? 3 6/3/08 - PUBLIC PROPERTY - BILL 080499 COMMISSIONER BRUNWASSER: Good afternoon, Councilman Clarke and members of the Committee on Public Property -- Public Works and Public Property. My name is Bernard Brunwasser and I am the Acting Water Commissioner. I am here today to testify on Bill No. 080499. This bill would authorize the Commissioner of Public Property to enter into a lease agreement for the Biosolids Recycling Center site with the Philadelphia Municipal Authority for further sublease to Philadelphia Biosolids Services. Together with the Bills 080495 and 080498 that are being reviewed by the Finance Committee, these bills will authorize the City of Philadelphia, acting through the Philadelphia Municipal Authority, to engage in a long-term contract with Philadelphia Biosolids Services for the long-term operation of the City's Biosolids Recycling Center. This project will make major improvements at that 4 6/3/08 - PUBLIC PROPERTY - BILL 080499 facility, including a significant reduction in odors. The benefits of the proposed BRC Improvement Project are many. Briefly, they include a significant cost savings projected to be nearly $200 million over the life of the contract. The Southwest Community Development Corporation recognizes the benefits of this project and supports it. It will result in much less truck traffic, 3,000 rather than 10,000 trucks trips per year entering and exiting the plant. Odors will be eliminated beyond the fence line. Site aesthetics will be greatly improved, and the City will have a new corporate member of the community. The thermal drying process will produce pathogen-free Class A biosolids. PBS, Philadelphia Biosolids Services, will bear full responsibility for managing the disposition of this material and is better positioned to react to market changes than the City could ever 5 6/3/08 - PUBLIC PROPERTY - BILL 080499 be. Synagro, a partner in PBS, Philadelphia Biosolids Services, has a long track record of successfully operating thermal drying systems, and the technology that has been chosen for this project is state of the art. No City employee will lose their job or be demoted as a result of this project. Thank you for this opportunity to come before you on this very important project. At this time, I, as well as others from my staff, will be happy to answer any questions that you may have.

Councilman Clarke

Thank you. Will anyone else be testifying? Mr. Herzins. Okay. Any questions of this panel by members of the Committee? (No response.)

Councilman Clarke

Just very briefly, it's my understanding in the earlier hearing there were a list of 6 6/3/08 - PUBLIC PROPERTY - BILL 080499 issues that were brought up during the course of the hearing, and I understand that there is a commitment to respond to all of those issues raised. Could you just quickly tick them off? I just want to make sure we're consistent with the earlier hearing. DEPUTY

Mayor Cutler

Councilman, Rina Cutler, Deputy Mayor for Transportation and Utilities. The two major issues that we have agreed to provide the Finance Committee with is an EOP plan, which when this contract was negotiated was not law and so had not been in the original submission. We've agreed to comply with that and move that forward. Also, Councilman Green requested a list of percentages in a variety of categories, women-owned businesses, disabled businesses, Philadelphia businesses, African-American businesses, Asian businesses, Latino businesses. So we will compile that by 7 6/3/08 - PUBLIC PROPERTY - BILL 080499 percentage, which was what he was seeking in terms of goals and participation. There may be one --

Councilman Clarke

Something about training I think I heard over the speaker, training program. DEPUTY

Mayor Cutler

Training, yeah. That would be part of the EOP and part of the workforce development plan. There may be one other issue. Oh, yes. Councilman Green requested that we respond to the union document that they provided. We have not seen it and do not have it, but as soon as we get it, we will also provide that. Councilman Greenlee has just volunteered his.

Councilman Clarke

Okay. Thank you. Any questions? Councilman Greenlee.

Councilman Greenlee

Thank you, Mr. Chairman. Just for the record, the Committee did put an amendment 8 6/3/08 - PUBLIC PROPERTY - BILL 080499 codifying what Commissioner Brunwasser was talking about as far as the job protection issue. We amended that in today.

Councilman Clarke

My understanding is that the jobs that will be made available at the new facility, which are currently DC 33 jobs, will then be -- DEPUTY

Mayor Cutler

Yes, Councilman. It had two parts to it. One was that no member would lose their job, lose any pay or any of the seniority and benefits. Part two was that they could, for up to a period of a year, apply for and go to work for the new vendor and if they did not like it, they would come back to the Water Department, specifically to the Water Department.

Councilman Clarke

Okay. Thank you. Any other questions? (No response.)

Councilman Clarke

There being 9 6/3/08 - PUBLIC PROPERTY - BILL 080499 none, thank you very much for your testimony. Any other witnesses? DEPUTY COMMISSIONER HERZINS: Good afternoon, Chairman Clarke and members of the Committee on Public Property and Public Works. My name is John Herzins, Deputy Commissioner in Public Property. I'm here on behalf of Commissioner Schlotterbeck today to offer support of Bill No. 080499, an ordinance 13 authorizing the Commissioner of Public Property, on behalf of the City of Philadelphia, to enter into a lease agreement with the Philadelphia Municipal Authority for further sublease to Philadelphia Biosolids Services, LLC, a certain portion of a parcel of ground located at 7800 Penrose Ferry Road, all under certain terms and conditions. This bill will allow the Philadelphia Municipal Authority to provide biosolids services to the City under a service contract at the 10 6/3/08 - PUBLIC PROPERTY - BILL 080499 City-owned Biosolids Recycling Center. PMA will make improvements to the center to enhance the performance of the processing of the City biosolids. The Department of Public Property supports this measure and, accordingly, I respectfully ask that City Council approve Bill No. 080499 and that this Committee vote this bill out of Committee with a favorable recommendation and that the rules be suspended to permit first reading at the next Council session. Thank you.

Councilman Clarke

Thank you. Any questions of this witness by members of the Committee? (No response.)

Councilman Clarke

There being none, thank you very much for your testimony. We have another follow-up. DEPUTY

Mayor Cutler

I apologize, Mr. Chairman. Rina Cutler, 11 6/3/08 - PUBLIC PROPERTY - BILL 080499 Deputy Mayor for Transportation and Utilities. As part of the original Water Department presentation, I believe it was necessary to request that you suspend the rules so that this can be heard at first reading.

Councilman Clarke

Thank you. DEPUTY

Mayor Cutler

Thank you.

Councilman Clarke

Thank you, Ms. Cutler. Okay. Anyone else here to testify on this bill? (No response.)

Councilman Clarke

There being none, we will leave the public hearing and we will now go into the public meeting. Councilwoman Krajewski, can I please ask for a motion on Bill No. 23 080499.

Councilwoman Krajewski

Mr. Chairman, I move that Bill 080499 be 12 6/3/08 - PUBLIC PROPERTY - BILL 080499 reported out of this Committee with a favorable recommendation and the rules of Council be suspended so as to permit first reading at the next session of Council. (Duly seconded.)

Councilman Clarke

Those in favor? (Aye.)

Councilman Clarke

Those opposed? (No response.)

Councilman Clarke

The ayes have it. Bill No. 080499 will be reported out of Committee with a favorable recommendation, with rules suspension as to allow reading at the next session of Council. Thank you very much. (Committee on Public Property and Public Works adjourned at 3:20 p.m.) - - - 13 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on June 3, 2008, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)